12.05.2006 – 19:26

Tanzanian Royalty Exploration Corporation

Tanzanian Royalty Chairman Completes Fifth Tranche of C$3 Million Private Placement and C$1 Million Private Placement

Vancouver, Canada (ots/PRNewswire)

Trade Symbol:
    TSX:  TNX
    AMEX: TRE

Tanzanian Royalty Exploration Corporation confirms that the fifth
tranche of the private placement by James E. Sinclair, Chairman and
CEO,  announced on May 2, 2006 and the $1,000,000 private placement
by Mr.  Sinclair, announced on May 3, 2006 have now closed.

Inclusive of the proceeds of the fifth tranche and the $1 million
private placement, Mr. Sinclair's total share placements to date
aggregate  over C$10.2 million.

The private placement common shares are subject to certain
mandated  hold periods and resale restrictions and the certificates
representing such  shares are legended accordingly. No warrants,
options or other rights have  been issued or granted in connection
with this placement.

Respectfully Submitted,

"James E. Sinclair"

James E. Sinclair

Chairman and Chief Executive Officer

Visit our website: www.TanzanianRoyaltyExploration.com

The Toronto Stock Exchange and American Stock Exchange have not
reviewed and do not accept responsibility for the adequacy or
accuracy of  this release

Cautionary Note to U.S. Investors - The United States Securities
and  Exchange Commission permits U.S. mining companies, in their
filings with  the SEC, to disclose only those mineral deposits that a
company can  economically and legally extract or produce. We use
certain terms on this  news release, such as "measured", "indicated",
and "inferred" "resources"  that the SEC guidelines strictly prohibit
U.S. registered companies from  including in their filings with the
SEC. U.S. Investors are urged to  consider closely the disclosure in
our Form 20-F, File No. 0-50634, which  may be secured from us, or
from the SEC's website at  http://www.sec.gov/edgar.shtml.

To request a free copy of this organization's annual report,
please go  to http://www.newswire.ca and click on Tools for
Investors.

Contact:

For further information: Investor Relations at 1-800-811-3855; Visit
our website: www.TanzanianRoyaltyExploration.com;